TransDigm offers $750 million eight-year senior subordinated notes; initial talk 5% area

By Paul A. Harris

Portland, Ore., April 12 – TransDigm Inc. plans to price a $750 million offering of eight-year senior subordinated notes (expected ratings B3/B-) in a Monday drive-by, according to market sources.

The deal, which was scheduled to kick off on a Monday conference call with investors, is in the market with initial guidance in the 5% area, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner. Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Barclays, HSBC Securities (USA) Inc., PNC Capital Markets LLC and KKR Capital Markets LLC are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback and a 101% poison put.

The Cleveland-based aerospace manufacturing company plans to use the proceeds to refinance its 6½% senior subordinated notes due 2025.

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